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Recent India research
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India: RBI reveals limits of monetary policy
The Reserve Bank of India has surprised markets by leaving the repo rate unchanged at its first monetary policy review since the shock demonetization on 8 November that has damaged economic activity. Although the central bank reduced its FY17 GDP forecast by 50 bps to 7.1 per cent, it looked through the “transitory but unclear effects” of the notes ban and emphasized the need to rein in inflationary...